Brazilian company Vale says it will begin annual benchmark iron ore talks for 2010-11 prices by the end of November.

Vale global iron ore director Renato Neves said the company had seen recovery following the shut down of mines due to weak demand much faster than expected, according to The Australian.

Vale, Australia’s BHP Billiton and Rio Tinto, the world’s top three iron ore miners, have typically negotiated annual benchmark iron ore prices with China, one of the world’s biggest steelmakers.

This year’s annual benchmark talks, however, failed as China could not reach a consensus with the three miners which have since been resorting to provisional contracts or the emerging spot market for selling iron ore to China.

“The seaborne iron ore market is likely to return to a very tight situation next year,” Neves said.

Vale annually generates roughly 300 million tonnes of iron ore a year.